Can I get an increase in my loan in the event of an economic disaster?
The SBA has recently started accept new applications for its Economic Disaster Loan to All Qualified U.S. Small Businesses and Farm Businesses on June 15, open to all businesses for the first time since it stopped accepting applications from all businesses except agriculture in April.
Initially overwhelmed by a deluge of demands, the SBA has since made it easier to access finance for business owners and lending institutions. So far, the SBA has distributed advances, which are essentially grants, worth more than 10 billion dollars and granted loans worth more than $ 90 billion. The program still contains billions of dollars in funding available for new applicants.
EIDL loans are distributed directly by the SBA, as well as by SBA approved lenders. Business owners can apply for loans or advances through the SBA. Unlike the Paycheck Protection Program (PPP), which allowed only one few partnerships To increase their loan size, if small businesses need more funds, they can apply for one from the SBA. (By the way, PPP loans are all due to be spent by the end of 2020.)
Business owners can contact the SBA Disaster Assistance Office at 1-800-659-2955 ([email protected]) or request a raise when they log into their SBA EIDL account. “Usually, however, they will be capped at six months of earnings for 2019,” says Ken Alozie, managing director of Greenwood Capital Advisors and Score mentor in Washington.
Applicants may also need to submit supporting documents. According to Carol Chastang, a public affairs specialist at the SBA, to apply for an increase in their EIDL funding, borrowers will need their latest federal income tax return (FTR), a signed IRS form 4506T, instructions 4506T, 4506T and an explanation. why the increase is necessary.
Additionally, if business owners applied for and received a PPP loan and used their EIDL for salary costs, their PPP loan must be used to refinance the EIDL loan.
Business owners have until December 31, 2020, or while funds are exhausted, to apply.
Editor’s Note: the Paycheque Protection Program resumed acceptance of applications on July 6 in response to the Paycheck Protection Program Extension Act. The new deadline to apply for a Paycheck Protection Program loan is August 8.
E-mail: [email protected]